Subject: RE: IPO Downside? From: Suzanne Lainson Date: Sat, 18 Jul 1998 17:04:31 -0600
How the Web Was Won
Subject: RE: IPO Downside? From: Suzanne Lainson Date: Sat, 18 Jul 1998 17:04:31 -0600
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>Under U.S. laws, officers of a company that files an Initial Public Offering
>on a U.S. stock market are prohibited from selling any of their shares for
>the first six months after the IPO. And lot can happen in that time.

But unless the stock price goes down to nearly zero, an officer/founder
will still be much richer than before the IPO.

Even if most of these companies fold, their founders should come out ahead.
They just have to sell a portion of their shares before a collapse and then
it's on to a new company or retirement.

Of course, not every company will attract VC and not every company will be
taken public. But given the prices investors are willing to pay, the
atmosphere seems very favorable right now.

I haven't gone back to look at what happened in the biotech industry, but I
don't remember a frenzy that is comparable to what is happening now.

Suzanne

_____________________________________
Suzanne Lainson
SportsTrust
Marketing: Integrated/Sports and Event/Online
P.O. Box 2071     Boulder, CO 80306
303 473-9884
slainson@sportstrust.com
_____________________________________
For a free subscription to SPORTS NEWS YOU CAN USE, send me an email.
For a free subscription to THE CREATIVE ATHLETE, send me an email.
http://www.sportstrust.com/sportstrust



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